The upward revision in gas prices is expected to put an additional pressure on the domestic inflation which has exceeded the Reserve Bank of India’s 6 per cent upper tolerance level for the second consecutive month in February.
Prices of domestically produced gas doubled(Photo: ONGC)
The price of domestically produced natural gas has more than doubled for the six months beginning April to September — amid a surge in global benchmark prices.
It will raise the prices of gas sold to households, the power sector, industries and fertiliser firms.
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The price of gas from regulated fields of state-owned Oil and Natural Gas Corp and Oil India will rise to a record $6.10 per million British thermal units from $2.90, according to an oil ministry’s Petroleum Planning and Analysis Cell notification.
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The rate paid for gas from difficult fields like deepwater, ultra deepwater, high pressure-high temperature will rise to $9.92 for the next six months from $6.13 per mmBtu, another notification by the PPAC said.
The prices of gas produced in India are typically linked to global benchmarks.
The upward revision in gas prices is expected to put an additional pressure on the domestic inflation which has exceeded the Reserve Bank of India’s 6 per cent upper tolerance level for the second consecutive month in February.
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